G-7, IMF and World Bank to review debts and block redirection of funds to China

English Jun 3, 2020

After meeting virtually with G-7 finance ministers, US Treasury Secretary Steven Mnuchin issued a note on Wednesday, saying that the group will work in cooperation with the International Monetary Fund (IMF) and the World Bank to reschedule debt payments to low-income countries amid the crisis brought about by the new coronavirus.

Mnuchin said that the G-7 should meet regularly to "improve the debt sustainability of these countries, and said that he expects" significant progress "already at the July meeting. In addition, the US Treasury, working in conjunction with the International Monetary Fund and the World Bank, is seeking to achieve full transparency on the debts of countries in the infrastructure initiative of the Belt and China Route and to ensure that institutions' funds are not used to pay China, Treasury Secretary Steven Mnuchin said on Wednesday.

"We think this is extremely important," Mnuchin said in an audience with the US House of Representatives Appropriations Committee. "We will never use money from these international organizations to pay China."

Some countries burdened with debt from Belt and Road projects, such as Pakistan, have turned to the IMF for assistance. Pakistan entered into a $ 6 billion loan program with the Fund in July 2019.


Morel Hernandes

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